Republic of the Philippines

AMA COMPUTER COLLEGE

S.Y. 2017-2018

First Quarterly Examination in Business Finance

(SET A)
Name:____________________________ Date:___________________
Course & Section:___________________ Score:__________________

Test I. Multiple Choice

Directions: Read the following questions comprehensively. Encircle the letter of the correct answer
1. These ratios are financial metrics that are being used to determine a company’s ability
to pay off its short-terms debts obligations.
a. Current Ratio c. Quick Ratio
b. Liquidity Ratio d. Activity Ratio
2. This ratio measures a firm’s ability to pay off its short-term liabilities with its current
assets.
a. Current Ratio c. Quick Ratio
b. Liquidity Ratio d. Activity Ratio
3. This is also known as efficiency or turnover ratio for this measures how effectively the
firm is using its assets.
a. Current Ratio c. Quick Ratio
b. Liquidity Ratio d. Activity Ratio
4. It is a liquidity ratio that measures the ability of a company to pay its current liabilities
when they come due with only quick assets.
a. Current Ratio c. Quick Ratio
b. Liquidity Ratio d. Activity Ratio
5. This measures the long-term obligation of the business.
a. Leverage Ratio c. Debt to Equity Ratio
b. Profitability Ratio d. Debt to Total Assets Ratio

Test II. Identification

Directions: From the pool of words below, choose the appropriate answer to the following
description.

Controller Treasurer Stocks Philippines Stock Exchange

Finance Financial Instrument Financial Market Current Ratio
Financial Manager Bonds Ratio Notes
__________1. It is the art and science that describes the management, creation and study of
money, banking, credit, investment, assets and liabilities.
__________2. He is in charge of the overall finance functions of a business.
__________3. He is the one responsible for managing the accounting staff that provides
managerial accounting information used for internal decision making, financial
accounting information for external reporting purposes and tax accounting
information to meet tax filing requirements.
__________4. His primary duties include asset safekeeping and cash management.
__________5. Is the written legal obligation of one party to transfer a thing of value usually
money to another party at some future date under certain conditions.
__________6. This is a type of security that signifies ownership in a corporation and represents
a claim on part of the corporation’s assets and earnings.
__________7.Is a debt security in which an investor lends his money to an entity which borrows
the funds for a defined period of time at defined interest rate.
_________8. Is where stocks bonds and other financial securities can be purchased or sold.
_________9. A private organization created to provide and maintain a fair, efficient,
transparent and orderly market for the purchase and sale of stocks and other
securities.
_________10. It is a mathematical relationship between one numbers to another number.

Test III. Enumeration

1-6 Complete set of Financial Statement

7-10 Types of Ratio

 Key to Correction:

Test I.

1. b. Liquidity Ratio
2. a. Current Ratio
3. d. Activity Ratio
4. c. Quick Ratio
5. a. Leverage Ratio

Test II.

1. Finance
2. Financial Manager
3. Controller
4. Treasurer
5. Financial Instrument
6. Stocks
7. Bonds
8. Financial Market
9. Philippine Stock Exchange
10. Ratio

Test III. Enumeration

1-6 Complete set of Financial Statement

- Income Statement
- Statement of Comprehensive Income
- Statement of Changes in Equity
- Statement of Financial Position (Balance Sheet)
- Statement of Cash Flows
- Notes to Financial Statements

7-10 Types of Ratio

- Liquidity Ratio
- Activity Ratio
- Leverage Ratio
- Profitability Ratio
 Republic of the Philippines
AMA COMPUTER COLLEGE
S.Y. 2017-2018

First Quarterly Examination in Business Finance

(SET B)
Name:____________________________ Date:___________________
Course & Section:___________________ Score:__________________

Test I. True or False

Directions: Read each statement below carefully. Write T if the Statement is TRUE, and write F if
otherwise.
__________1. A bond is a type of security that signifies ownership in a corporation and
represents a claim on part of the corporation’s assets and earnings.
__________2. Ratio is a mathematical relationship between one numbers to another number.
__________3. Treasurer is responsible for managing the accounting staff that provides
managerial accounting information used for internal decision making, financial
accounting information for external reporting purposes and tax accounting
information to meet tax filing requirements.
__________4. The primary duty of a controller includes asset safekeeping and cash
management.
__________5. Wealth maximization is a modern concept which deals with the increase of the
value of a business in order to increase the share of stockholders or the owners.
__________6. Finance is the art and science that describes the management, creation and
study of money, banking, credit, investment, assets and liabilities.
__________7.Stocks is a debt security obligating repayment of a loan with a corresponding
interest within a defined period of time.
_________8. Financial instruments is a written legal obligation of one party to transfer a thing
of value usually money to another party at some future date under certain
conditions.
_________9. Financial system is a framework which collectively describes the financial
markets, financial institutions, borrowers and lenders within the economy.
_________10. Financial Manager is in charge of the overall finance functions of a business.

Test II. Multiple Choice

Directions: Read the following questions comprehensively. Encircle the letter of the correct answer

1. It compares the company’s total debt to total equity.

a. Debt to Equity Ratio c. Leverage Ratio
b. Profitability Ratio d. Debt to Total Assets Ratio
2. It is a leverage ratio that measures the amount of total assets that are financed by
creditors instead of investors.
 a. Profitability Ratio c. Debt to Equity Ratio
b. Debt to Total Assets Ratio d. Leverage Ratio
3. These are ratios that relate profits to sales and investment.
a. Debt to Total Assets Ratio c. Leverage Ratio
b. Debt to Equity Ratio d. Profitability Ratio
4. This is an efficiency ratio or activity ratio that measures how many times a business can
turn its account receivable into cash during a period of time.
a. Payable Turnover c. Gross Profit Margin
b. Receivable Turnover d. Net Profit Margin
5. It is a profitability ratio that measures the amount of net income earned with each peso
of sales generated by comparing the net income and net sales of a company.
a. Payable Turnover c. Gross Profit Margin
b. Receivable Turnover d. Net Profit Margin

MWI Veterinary Supply, Inc.

Comparative Balance Sheet
For the Year Ended 2015 and 2016

Assets 2015 2016 Amount Percent

Cash and Receivables
Investments
Real Estate
Business Interests
Personal Property
Retirement Assets
Other Assets
Total Assets

Liabilities
Credit cards
Automobile Loan
Mortgages
Other debts
Total Liabilities

Stockholder’s Equity
Preferred Stock
Common Stock
Retained Earnings
Total Liabilities and Stockholder’s Equity
Test III. Enumeration

1-5 Functions of Financial Manager

6-8 Financial Instruments
9-10 Examples of Non-Banking Financial Institutions

Assets
Cash and Receivables

Investments

Real Estate

Business Interests
 Personal Property

Retirement Assets

Other

Total Assets

Liabilities
Credit Cards

Automobile loans

Mortgages

Other Debts

Total liabilities
Net Worth
Total Liabilities and Equity

Key to Correction:
1. False
 2. True
3. False
4. False
5. True
6. True
7. False
8. True
9. True
10. True

Test II.
1. a. Debt to Equity Ratio
2. b. Debt to Total Assets Ratio
3. d. Profitability Ratio
4. b. Receivable Turnover
5. d. Net Profit Margin

Test III.
1-5 Functions of Financial Manager
- Forecasting Financial Requirements
- Acquiring Necessary Capital
- Investment Decision
- Cash Management
- Interrelation with other Departments

6-8 Financial Instruments

- Stocks
- Bonds
- Notes

9-10 Examples of Non-Banking Financial Institutions

- Credit Unions
- Insurance Companies
- Savings and Loan Associations

Prepared By:
Milleth San Buenaventura
Assistant Instructor

Noted By:

Ruelyn A. Millena
Head Teacher